Difference In Auto Loan Terms For Someone With Good Credit Or Bad Credit
Here is the good news! Whether you are someone with good credit or bad credit, you can get an auto loan. In the good credit scenario, you will be able to pretty much pick and choose the auto dealer and the terms while having a smile on your face even after they hand you the keys. You might even pay cash which should include a company discount or rebate. You will not need much skill since you have probably been online and know what you want. The salespeople will be all over you like bees to pollen.
Bad Credit Scenario
The bad credit scenario will be different but you can still get an auto loan. You will not be shopping at one of those fancy dealerships with the colorful banners blowing in the breeze, and the salesperson’s parlance will a bit different. You know your credit sucks because you got your credit score and in about five minutes, so will the dealer. This will expose the difference in terms for auto loans between someone with good credit and someone with bad credit. However, the dealer could care less. That is the bulk of his business. They will still try to get you a car but at high interest financing rates. You will have a nice, clean, cheap used automobile guaranteed for 30 days. You need transportation and this dealer is your answer. Beggars can’t be choosers.
Going back to the good credit scenario, if you are the buyer, not paying cash and considering 24 month terms, whatever you do, do not let the dealership finance your automobile. Usually good credit people already have financing arranged from their own bank and can sign the paperwork, hand the dealership a cashier check, and get the keys before the salesperson can offer them a second cup of coffee.
On the other hand, the bad credit person has no opportunity to walk into a dealership holding a check for a car unless they received some huge windfall of cash. This means you will have to depend on the dealer for financing. You won’t like it, but you’ll take it even if the interest rate is greater than 10 percent. Do not put yourself in this situation and start improving your credit now. Put yourself in a scenario where you can control the outcome of the transaction. Improve your credit, call beforehand to see if they can offer the car to you for your desired price and price compare among different dealerships.
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